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FORECAST 2026: Emerging Trends

Author

Tammy M. Appel
Contributing Editor
LIMRA and LOMA

January 2026

We asked executives participating in our annual FORECAST survey which emerging trends they expect will most influence their organization over the next 12-24 months. Artificial intelligence (AI) stood out as the leading priority and was mentioned by nearly every respondent. Executives also emphasized the impact of changing demographics, evolving distribution models and shifting customer expectations, while noting cybersecurity risks and financial pressures as continuing concerns.

From Experimentation to Integration

AI is widely viewed as a transformative force in insurance and financial services. Virgil R. Miller, President of Aflac Incorporated & Aflac U.S., says AI is enabling faster claims processing, predictive risk modeling, and enhanced customer interactions. “Its rapid adoption will redefine operational efficiency and create competitive pressure to balance automation with human empathy in sensitive service areas,” he says.

Echoing that perspective, Sarah Mineau, SVP – Financial Services, State Farm, says AI plays an “outsized role” in both daily life and how insurers deliver value. “Whether it’s helping our people be more productive, helping customers make sense of choices, personalizing communications effectively, streamlining administrative and governance activities, and helping sales organizations better target and tailor the right customers with the right offers — the influence of AI seems unlimited,” she says.

Similarly, Kevin Molloy, Chief Financial Officer, Guardian, emphasizes that Guardian is focusing on AI-enabled operating speed. “Whether it’s underwriting, claims, or service, our customers are expecting that same speed and clarity,” Molloy says. “They want always-on, plain-language service across every channel: advisor, employer or direct.”

For New York Life, the rise of agentic AI is particularly noteworthy. Aaron C. Ball, EVP, Head of the Foundational Business, predicts that AI is moving from experimentation to enterprise integration, changing how work gets done. “Agentic AI will unlock capacity, improve decision making, and enhance experiences across underwriting, service and distribution,” Ball says. “The real differentiator will be using these tools responsibly and in ways that strengthen the advisor and client experience.”

Adding to this conversation, Matt Berman, President & Chief Executive Officer, Foresters Financial, highlights how the pace of change in advanced analytics and AI is transforming every aspect of the value chain — from product development to customer and advisor experiences. “These capabilities will enable us to deliver more personalized, efficient and scalable solutions,” Berman says. He points to Foresters’ recently launched Live Well Plus Participating Whole Life Insurance product as an example of how his organization is harnessing this innovation to simplify underwriting while keeping protection affordable. “AI and advanced analytics will enable independent advisors to build scale in their practices and help more families close the protection gap.”

Offering further insight, Ron Herrmann, CFP, EVP, Head of Americas, Reinsurance Group of America (RGA), stresses that AI and emerging technology are a primary focus and will continue to accelerate as companies move from the pilot phase into production. “While we can’t predict exactly how this will affect the industry, potential impacts could be profound — from workforce development and client engagement to product creation and risk management,” Herrmann says. “The most immediate wins center on efficiency, but over the long term, it will be new insights and better-informed decisions driven by AI that fuel transformational progress.”

Demographic Shifts

Changing demographics remain a critical concern for insurers. Berman cites U.S. Census Bureau projections — as reported by the Administration for Community Living, 2023 Profile of Older Americans, U.S. Department of Health and Human Services (May 2024) — showing a significant increase in Americans aged 65 and older by 2040. “With more people entering retirement in an era of market fluctuations and economic uncertainty, the need for dependable, supplemental income sources is greater than ever, and we’re seeing significant opportunity in the fixed annuity space,” he says.

Marc Giguère, President & CEO, Munich Re Life US, says his organization closely monitors demographic shifts. “We collaborate with clients to design solutions for both an aging workforce and younger, first-time life insurance buyers, including combination products for life insurance and long-term care, and automated solutions tailored to digital natives,” Giguère says.

Meanwhile, Paul LaPiana, CFP, Head of Brand, Product & Affiliated Distribution, MassMutual, says for the longest time, the industry focused on helping people protect against the risk of dying too young. While that’s not changing, the industry must now also address the realities of living much longer, he says.

“With the massive number of people entering their retirement years, we are seeing increased intense focus on addressing the realities of living longer. Much longer. And it is necessary that we do so.”

He goes on to say that how people manage and spend their wealth in their later years — otherwise known as decumulation — is increasingly complex. “This is a huge opportunity for us to help even more people with the nuanced planning required of establishing an income stream for an unknown number of years. It is a time to help people be best equipped to not outlive their savings, mitigate tax exposure and other risks, live the lifestyle that they envision for as long as possible, and to thoughtfully pass their wealth on to those important to them,” LaPiana says.

Distribution Models

Executives point to the evolution of distribution models as a major trend. The evolution of distribution in life insurance is reshaping how carriers connect with customers, transitioning from reliance on captive agents to a dynamic mix of independent advisors, digital platforms and strategic partnerships.

“We’re seeing several intersecting forces that will shape the next phase of our industry and Foresters’ growth,” says Berman. “One is the continued evolution of distribution. In the US, horizontal consolidation among intermediaries is reshaping relationships, while in Canada, we’re observing more vertical alignment, with carriers acquiring or integrating distribution networks,” he says.

Giguère adds that while most carriers now offer automated customer solutions, the next big development is digitally transforming agent and broker engagement. “We’re working closely with our carrier partners to streamline distribution workflows, so everyone wins, especially the end consumer,” he says.

Customer Expectations

Evolving customer expectations are pushing insurers to deliver more personalized, seamless, and technology-driven experiences. Ball emphasizes that clients expect simplicity, personalization, and transparency across every interaction. “Ultimately, success will depend on how well we align technology, integrated experiences, talent, and trust,” he says. “The differentiator won’t be speed — it will be clarity of purpose, responsible execution, and staying grounded in our mission to serve with humanity.”

Wade Harrison, Vice Chairman & Chief Operating Officer, Protective Life Corporation, agrees, noting that these expectations drive Protective to be more agile and responsive. “Our roadmap reflects this by balancing disciplined expense management with strategic investments that enhance both customer and employee experiences,” Harrison says.

Growth and Innovation

Executives identify growth and innovation as key priorities. Jasmine Jirele, President & Chief Executive Officer, Allianz Life US, notes a shift in how high-net-worth investors use products like indexed universal life insurance and annuities to manage taxes in their portfolios. “Continuing to innovate with our product offerings not only will allow us to continue supporting our core markets, but it also will enable us to expand into more affluent markets through our distribution channels,” Jirele says.

Harrison adds that sustainable, scalable growth is also a core priority, and achieving it requires embracing change. “We are committed to fostering a culture that supports innovation and adaptability, while investing in talent development and engagement opportunities to ensure our employees feel valued and empowered,” he says.

Giguère also stresses the importance of responsible innovation as AI adoption grows. “We lead in responsible innovation, ensuring our solutions are both effective and ethical.”

Growing Concerns

Meanwhile, cybersecurity and data protection are among the trends executives are closely watching. Miller warns that escalating cyberthreats and increasing regulatory scrutiny around data privacy will significantly impact risk management strategies.

Governance is another area drawing heightened attention. Molloy points to tightening governance expectations, with a growing “focus on data privacy, model oversight, suitability, illustrations, and vendor management.” He explains that his organization is investing in controls from the ground up to stay ahead.

Beyond operational and regulatory challenges, consumer sentiment and financial pressures are emerging as other critical factors shaping the industry. Many Americans are grappling with mounting financial pressures — rising living costs, growing debt burdens, and uncertainty about the broader economic outlook.

“Financial anxiety is an epidemic in America,” says Kamilah Williams-Kemp, EVP & Chief Product Officer, Northwestern Mutual.

Feelings of financial insecurity are near record highs, and feelings of financial security are near record lows, according to Northwestern Mutual’s research. “There’s a significant gap between Americans’ current savings and their ‘magic number’ to retire comfortably,” she says.

Williams-Kemp says her organization views this as a historic opportunity not only to redefine financial security, but also to help millions of Americans achieve it through a comprehensive approach — one that combines insurance, investments, personalized planning, and the expertise of a trusted advisor.

Conclusion

Across all perspectives, five themes stand out: AI adoption, demographic shifts, evolving distribution, rising customer expectations, and financial pressures. Together, these trends signal an industry in rapid transformation — one that demands agility, innovation, and a steadfast commitment to trust and transparency. Insurers that embrace these changes responsibly position themselves to lead in the years ahead.

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